Regulatory harmonisation: Can FG finally fix Nigeria’s digital governance problem?

By Francisca Anuforo

For years, Nigeria’s telecom operators, fintech firms, startups and digital businesses have warned that the country’s regulatory environment has become increasingly fragmented. Multiple government agencies often issue overlapping directives, impose separate compliance requirements and demand similar reporting obligations, driving up operating costs and creating uncertainty for investors.

Now, the Federal Government appears ready to address those long-standing concerns.

Earlier this month, the Minister of Communications, Innovation and Digital Economy, Dr. Bosun Tijani, directed the Nigerian Communications Commission (NCC), the National Information Technology Development Agency (NITDA) and the Nigeria Data Protection Commission (NDPC) to suspend the introduction of new cross-cutting regulations affecting internet platforms and digital businesses until a harmonised national regulatory framework is developed.

The directive signals a shift toward a more coordinated approach to digital governance, with the goal of eliminating regulatory conflicts, improving policy consistency and making Nigeria’s digital economy more attractive to investment.

A problem years in the making

The issue of regulatory overlap is not new.

As digital technologies have evolved, the boundaries between telecommunications, information technology, cybersecurity, artificial intelligence, cloud computing and data protection have become increasingly blurred. Companies that once dealt primarily with telecom regulations now find themselves complying with multiple regulators overseeing different aspects of the same business activities.

The result, according to industry stakeholders, has been duplicated compliance obligations, multiple licensing requirements, overlapping reporting structures and uncertainty over which agency has primary jurisdiction.

For many businesses, especially startups, the burden extends beyond paperwork. Compliance now requires significant spending on legal advisory services, regulatory audits, policy interpretation and engagement with several government agencies.

Industry has repeatedly sounded the alarm

The Association of Telecommunications Companies of Nigeria (ATCON) has consistently argued that overlapping regulation is becoming a major obstacle to sector growth.

Speaking during the association’s Annual General Meeting themed “Impact of Adjacent Agencies on the Nigerian Telecom Sector: The Way Forward,” ATCON President, Tony Izuagbe Emoekpere, warned that increasing interference by non-core regulators has created an unpredictable operating environment for telecom operators.

According to him, several government agencies have introduced separate levies and operational requirements affecting telecom companies, resulting in duplicated charges and conflicting obligations.

He maintained that Nigeria requires a unified regulatory model capable of streamlining oversight, eliminating policy conflicts and providing investors with greater certainty.

The Association of Licensed Telecommunications Operators of Nigeria (ALTON) has echoed similar concerns.

Its Chairman, Engr. Gbenga Adebayo, has repeatedly warned that regulatory uncertainty arising from overlapping mandates weakens investor confidence and creates unnecessary commercial and legal risks for operators.

According to Adebayo, investors closely monitor how countries manage regulatory disputes. Markets where institutional responsibilities are unclear or regulatory disagreements disrupt business operations become less attractive for long-term investment.

ALTON also raised similar concerns during deliberations on the proposed National Digital Economy and e-Governance Bill, cautioning against creating overlapping responsibilities between the NCC and NITDA.

The association advocated clearly defined regulatory roles, stronger institutional collaboration and coordinated governance involving the NCC, NITDA, NDPC and other relevant agencies.

Why harmonisation matters

For digital businesses, regulatory overlap is more than an administrative inconvenience—it directly affects competitiveness.

Every additional compliance requirement consumes resources that could otherwise be invested in innovation, product development, hiring and market expansion.

Technology analyst and Chief Executive Officer of Jidaw System Limited, Jide Awe, noted that startups are particularly vulnerable because they often lack dedicated compliance teams.

Unlike large telecom operators with specialised legal and regulatory departments, many early-stage companies must divert scarce financial resources to meeting multiple regulatory obligations.

Beyond direct compliance costs, regulatory uncertainty also influences investment decisions.

Investors generally favour jurisdictions where rules are predictable and regulatory responsibilities are clearly defined. When multiple agencies appear to regulate similar activities, businesses may postpone expansion while investors delay funding decisions until greater clarity emerges.

Why the timing is significant

The government’s intervention comes at a time when Nigeria’s digital economy has become one of the country’s strongest growth drivers.

Telecommunications contributed 9.19 percent to Nigeria’s real Gross Domestic Product (GDP) during the first quarter of 2026, while Nigerians spent approximately ₦3.33 trillion on internet data within the same period.

With more than 182 million active telephone subscriptions, Nigeria remains one of Africa’s largest digital markets.

As digital services continue to expand into artificial intelligence, cloud computing, fintech and digital platforms, industry experts argue that regulatory coordination is becoming increasingly essential for sustaining growth.

Beyond policy announcements

Stakeholders have broadly welcomed the Federal Government’s harmonisation initiative, describing it as an opportunity to resolve years of regulatory friction.

Among the key expectations are clearly defined responsibilities for each regulator, a unified compliance framework, reduced duplication of reporting requirements, stronger stakeholder engagement before new regulations are introduced and greater regulatory certainty for investors.

Industry experts also expect deeper collaboration among the NCC, NITDA and NDPC as emerging technologies increasingly cut across traditional regulatory boundaries.

However, many observers caution that the success of the initiative will ultimately depend on implementation rather than policy declarations.

For businesses operating within Nigeria’s digital economy, the objective has never been less regulation, but smarter regulation—one that protects consumers, safeguards data, encourages innovation and provides the certainty required for long-term investment.

If successfully implemented, the harmonisation drive could mark a significant turning point in Nigeria’s digital governance, strengthening investor confidence while positioning the country for the next phase of digital economic growth.